Although Target is a national retailer, a new report happened to catch our eye largely because it’s a company that’s based right here in Minneapolis. According to a study done by RealtyTrac, home owners who have purchased a home near a Target store have experienced a higher home value appreciation rate than the national average, which is certainly good news for those of us who usually overspend every time we step foot inside.
As noted by Marketwatch, which outlined the study here, owners who purchased a home near a Target store between 2004 and 2015 saw an average appreciation of 27% in the home’s value, or roughly $65,569. During that same time period, the average appreciation for homes nationwide was just 22%, or approximately $40,626.
What’s particularly interesting about the study, however, is when you start to compare the same statistics to homes near a Walmart store. According to that same report, home owners who purchased a home near Walmart between 2005 and 2015 only saw an appreciation of 16%, or about $24,900. In addition, homes near a Target have a much higher value than homes near a Walmart store, and it’s really not even close. In fact, the numbers are showing that on average, homes near a Target have a home value of $307,286, which is 72% higher that homes near a Walmart, which have an average home value of $178,249.
With that, though, home owners near Target stores are also paying an average of $7,000 in property taxes, which is more than twice what home owners near a Walmart are paying in property taxes, which is reported to be $3,146. For reference, the average property tax across the entire U.S. is $4,283, according to RealtyTrac.
So what does this all mean?
Well, at the very least, if you’re looking for a more affordable home somewhere in the Twin Cities, perhaps a good strategy to use during your home search is to seek out the nearest local Walmart.